BlueBay said it had “good inflows and investment performance”. Its core investment grade debt products continued to account for the majority of the inflows with $8.6bn (£5.5bn) for the year.

But as the year progressed and the new credit cycle became more established, it saw
stronger inflows into other strategies with higher risk-return profiles, most notably emerging market debt with net inflows of about $1.9bn.

Meanwhile, the first two months of the new fiscal year started so well that by the end of August assets under management were about $37.4bn, up more than $3bn from the end of June.

BlueBay’s performance was “marked by robust asset growth and a significant improvement in both operating margins and profitability,” chief executive Hugh Willis said in a statement.

He added the first six months of 2011 would see several new product launches.

BlueBay plans to develop a European government bond business aimed at taking advantage of the recent deterioration in sovereign debt in European, which should favour a credit specialist.